On January 1, the valuation allowance for trading investments account has a zero balance. On December 31, the cost of trading securities portfolio was $64,200, and the fair value was $67,000.​Prepare the December 31 adjusting journal entry to record the unrealized gain or loss on trading investments.

Valuation Allowance

An accounting technique used to offset or reduce the carrying value of certain tax assets if it's more likely than not that they will not be realized.

Unrealized Gain

The increase in value of an asset or investment that has not been sold or exchanged, thus not yet generating cash.

Trading Investments

Assets that a company primarily buys and sells to generate profit from short-term fluctuations in price.